Trade up or stay put?

F

Foodie1

Registered User
Messages
66
Got some great advice here before: have now sold the apartment!

Salary husband 90k private
Salary me 30k public service
Take home salary 6,700pm

25k savings. Save 1k pm

Bought house for 360k 10 yrs ago.
House value 280k. 215k left. 2,500pm as we are overpaying by 1,200 pm. Will be finished in 7 yrs

No debts or credit card

Pension is small for me as part time. Husband no pension. Could do 3% scheme with work

My question is should we consider trading up as now mid 40s and dont like area? We would probably get the mortgage but husband has chronic health condition which may cause problems for life Insurance. We are investigating that now and may still be ok as he has old life insurance policy from apartment and covered with 2.5 salary death in service.
Veering between playing it safe and staying put until kids older or moving now whilst we can?
 
We would be looking for 300k
Yes pension is 3% from empolyer and 3% from
Death in service not dependant on pension according to HR
 
Just quickly on the pension - it seems silly not to be putting in at least the 3%. He'll get tax relief, and employer matched, so for a net cost of about 1.6% of salary he gets 6% into pension.
It's worth looking into.

I take it you mean mortgage would be 300k if you trade up? You can obviously afford it. You're both young enough to get 20 year term so repayments would be 1660 at 3%. If you continue to pay 2,500 per month it'd be clear in 12 years.

There are lots of non financial factors for you to think about. Why do you want to move? Will the stress of moving be worth it?
And if you know you'll trade up at some point, will you get the benefit waiting until just before your children move out?
 
Property is a high risk asset class, you have already proved it once! And now in poor health and probably with more responsibilities you want to try and prove it a second time??? And all because you don’t like the area. In case you have not noticed, you have already had 80k wiped of your personal wealth!

In 10+ years time your accommodation needs will decrease as your kids grow up and move away. You can then think about trading down and be in a better financial position if necessary.

At this stage your emphasis should be on the accumulation of a pension pot as quickly as possible rather than exposing yourself to further risk of a loss in personal wealth by investing in a high risk asset class. It is very possible that your husband may not be able to work another 20+ years if he is facing serious illness in the future.
 
Thanks Jim2007. Harsh to hear but feel you are right. Back to the drawing board again!
 
Jim2007 said:
And all because you don’t like the area. .
Click to expand...

Think it depends on what this means. It can be very different for a lot of people. If it means joyriders outside house every night or drug dealers around the corner then its not so simple to ignore if they can afford to avoid it.
 
You must log in or register to reply here.
Back
Top